High Levels of Trust Allow Less Formal Contracts to Govern

question 120

True/False

High levels of trust allow less formal contracts to govern the relationship between alliance partners and increases the likelihood of alliance success.

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Definitions:

Maintenance

The upkeep and repair of machinery, equipment, and buildings to ensure their optimum working condition.

Shortage

A market condition occurring when the demand for a product or service exceeds the supply available at a specific price.

Equilibrium Level

The state of balance where demand equals supply in a market, resulting in an optimal distribution of resources without excess supply or demand.

Price Ceiling

A maximum legal price above which a product cannot be sold; to have an impact, a price ceiling must be set below the equilibrium price.